'The memory chip market is heading toward a severe shortage': analyst firm believes RAM crisis could get far worse in 2027 — and you can blame AI ramping up

A gloomy report by KB Securities paints a dire picture of the memory chip market, warning of a potential severe shortage of RAM by 2027. The report cites a massive surge in demand for memory chips due to AI development, with infrastructure investments for AI rising by 60% year-on-year to $1.3 trillion. This increased demand is driving up the need for memory, particularly HBM4 memory used in AI data centers.

Major memory chip manufacturers Samsung and SK Hynix are reportedly down to fewer than 10 days of inventory, raising concerns about a potential depletion of memory supplies. Analyst Kim Dong-won of KB Securities stated that AI servers will consume not only HBM memory but also server DDR5 and enterprise SSDs, leading to a historic shortage.

However, there is a small ray of hope from laptop maker Framework, which has reduced the price of some of its products due to securing cheaper memory modules. Despite this positive step, the overall sentiment remains pessimistic, with analysts warning of a historic shortage of memory chips that could impact consumer products as well.